Are you a victim of an underperforming, overpriced car insurance policy? Believe me, many consumers feel financially strained by their car insurance policy.
Since consumers have many insurance providers from which to choose, it can be impossible to pick the best provider.
It’s important that you understand the different types of things that come into play when calculating the price you pay for auto insurance. Knowing what impacts premium levels empowers consumers to make smart changes that could result in big savings.
Car insurance is not cheap, but companies offer discounts that many people don’t even know exist. A few discounts will automatically apply at the time of purchase, but lesser-known reductions have to be asked about before being credited.
As a disclaimer on discounts, some credits don’t apply the the whole policy. The majority will only reduce specific coverage prices like collision or personal injury protection. So even though they make it sound like you could get a free auto insurance policy, companies don’t profit that way. But any discount will help reduce the cost of coverage.
A partial list of companies that possibly offer these money-saving discounts include:
Double check with every prospective company which discounts they offer. Some discounts might not be offered everywhere.
21st Century, Allstate and State Farm constantly bombard you with television and radio advertisements. All the companies say the same thing of big savings if you switch your coverage to them. How do they all say the same thing? It’s all in the numbers.
All companies have a certain “appetite” for the driver that earns them a profit. For instance, a driver they prefer could be between 30 and 50, a clean driving record, and has great credit. Any new insured who fits that profile will get the preferred rates and as a result will probably pay quite a bit less when switching companies.
Potential insureds who don’t qualify for these standards must pay higher rates and ends up with the driver buying from a lower-cost company. The ad wording is “people who switch” not “everybody who quotes” save that much money. That’s why companies can truthfully make the claims of big savings.
This illustrates why it is so important to get as many comparisons as possible. Because you never know which insurance company will fit your personal profile best.
When choosing adequate coverage, there is no cookie cutter policy. Each situation is unique so your insurance should reflect that For instance, these questions might point out if your situation would benefit from professional advice.
If you don’t know the answers to these questions then you might want to talk to a licensed agent. If you want to speak to an agent in your area, fill out this quick form or you can also visit this page to select a carrier
Learning about specific coverages of your policy can help you determine which coverages you need and proper limits and deductibles. The terms used in a policy can be ambiguous and coverage can change by endorsement. These are the usual coverages found on most auto insurance policies.
Collision – Collision coverage covers damage to your CR-V resulting from colliding with an object or car. You first must pay a deductible then the remaining damage will be paid by your insurance company.
Collision coverage protects against claims like crashing into a ditch, hitting a parking meter, colliding with another moving vehicle and damaging your car on a curb. Paying for collision coverage can be pricey, so you might think about dropping it from vehicles that are 8 years or older. Drivers also have the option to choose a higher deductible to get cheaper collision coverage.
Coverage for liability – Liability coverage can cover damage or injury you incur to people or other property by causing an accident. It protects YOU against other people’s claims. Liability doesn’t cover your own vehicle damage or injuries.
Split limit liability has three limits of coverage: bodily injury for each person injured, bodily injury for the entire accident and a property damage limit. You might see policy limits of 25/50/25 that means you have a limit of $25,000 per injured person, a per accident bodily injury limit of $50,000, and a limit of $25,000 paid for damaged property. Some companies may use a combined limit that pays claims from the same limit and claims can be made without the split limit restrictions.
Liability coverage pays for claims like medical services, legal defense fees, emergency aid and pain and suffering. How much liability coverage do you need? That is a personal decision, but buy as large an amount as possible.
Comprehensive auto insurance – Comprehensive insurance covers damage that is not covered by collision coverage. You first must pay your deductible then your comprehensive coverage will pay.
Comprehensive can pay for things like a tree branch falling on your vehicle, theft, damage from a tornado or hurricane, damage from getting keyed and falling objects. The most your auto insurance company will pay is the market value of your vehicle, so if it’s not worth much more than your deductible consider removing comprehensive coverage.
Coverage for uninsured or underinsured drivers – This coverage provides protection when other motorists do not carry enough liability coverage. It can pay for injuries to you and your family as well as damage to your 1997 Honda CR-V.
Because many people carry very low liability coverage limits, their liability coverage can quickly be exhausted. That’s why carrying high Uninsured/Underinsured Motorist coverage is a good idea. Normally these limits are set the same as your liablity limits.
Coverage for medical expenses – Medical payments and Personal Injury Protection insurance kick in for short-term medical expenses such as EMT expenses, dental work, surgery, doctor visits and ambulance fees. The coverages can be used in conjunction with a health insurance policy or if you do not have health coverage. It covers you and your occupants and also covers any family member struck as a pedestrian. PIP coverage is not available in all states but can be used in place of medical payments coverage
As you restructure your insurance plan, make sure you don’t skimp on critical coverages to save a buck or two. There are too many instances where someone dropped liability coverage limits only to find out that a couple dollars of savings turned into a financial nightmare. The proper strategy is to get the best coverage possible at a price you can afford while still protecting your assets.
Cheap 1997 Honda CR-V insurance is possible both online in addition to many insurance agents, and you should be comparing both to have the best chance of lowering rates. A few companies do not provide online price quotes and many times these smaller companies only sell through independent insurance agents.